Clear thinking
Straight talking
Heavy hitting
April 24th 2002
NERSC Outline Business Case Development
John Littleton – NERSC Chair (0191-211-6585)
David Hunter – French Thornton (020-7976-2688)
Stephen Davis – French Thornton (020-7976-2688)
The Challenge
The OBC needs to deliver:
•
•
•
•
•
Real Business benefits - local authority
Real Business benefits - transport operators
Regional improvements - social benefits
Citizen benefits - service improvements
Modernisation improvements - e-Gov targets
The Approach
Interview
Members
Infrastructure Providers
(DTLR/ RDA/ RA etc…)
Further consultation with NERSC
members to develop/ review ideas
Review approach to Outline Business Case
with other national players – C’wall, So’ton, B’nell
Produce Outline Business Case & present findings to NERSC
Work with NERSC to take OBC through to funded procurement
The Business Model Variables
Key factors driving the Business Model:
• Organisational Structure
• Smart Card Technology
• Applications
NERSC SMARTCARD
Long List of Options
The ‘Long List’ of options for the Business Model:
ORG’N STRUCTURE
H
se
ou
JV
ix
M
V
2. Combi
3. Consolidated
2. All Core Applications
D
R
A H
C
S’ EC
T
3. All Core Applications plus some Desirable
APPLICATIONS
1. Map ID
n
2
&
lJ
ul
ate
iv
Pr
I
1.
2.
1
3.
F
4.
1. Regional Selection of Core Applications
The Smart Card Value Chain
The Value Chain
Security
Management
Clearing &
Settlement
Data
Management
Scheme
Operation
Application
Management
Income
Apportionment
Terminal
Infrastructure
Network
Infrastructure
Help System
Marketing
Policing
The Smart Card Value Chain
The Value Chain – A Complete System
Security
Management
Clearing &
Settlement
Data
Management
Scheme
Operation
Application
Management
Income
Apportionment
Terminal
Infrastructure
Network
Infrastructure
Help System
Marketing
Policing
The Business Model - Overview
NERSC Costs - Scheme Operation
Service Providers
Costs
Business Case (Service 1)
The Value Chain
VARIABLE
Security
Management
FIXED
Clearing &
Settlement
Data
Management
Scheme
Operation
Application
Management
Income
Apportionment
Terminal
Infrastructure
Network
Infrastructure
Help System
Hardware Cost
£
Card Purchase
£
Value Chain Costs
£
Marketing
Policing
Card Numbers
Business Case (Service 2)
NERSC Card Numbers
Third Parties
Card Numbers
Income
£
Service 1
X
Card Purchase
£
Service 2
Y
Value Chain Costs
£
NERSC Revenues - Income Streams
Service
Providers
Hardware Cost
Card space
rental paid
to NERSC
Third Parties
Commercial App’n 1
Card space
rental & transaction
fees paid to NERSC
Commercial App’n 2
Branding/ Marketing
The Benefits
The multiple benefits of the initiative:
•
•
•
•
•
Citizens
– Easier access to local services within the North East region
Local Authorities
– Improving the lives of citizens in the North East through electronic
delivery of public services
Transport Operators
– Delivering the benefits of Smart Card ticketing at a reduced cost
DTLR, One NorthEast, Regional Assembly
– Significant infrastructure improvements to the North East region
Central Government
– Enables e-Government transactions
A ‘win-win’ scenario for all stakeholders
The Programme Roadmap
Continue joint working with other smart card projects
Outline Business Case presented to NERSC Group
NERSC members report back to their respective organisations
NERSC considers initial feedback from member organisations
NERSC to make a decision on procurement process & timetable
NERSC launch event (national/ local politicians present)
Issue OJEC Notice
Receive supplier proposals
Contract drafted
Contract award
Commence programme implementation
NERSC services go live – Phase 1 (Local A’s to decide on services)
NERSC services go live – Phase 2 (Services to be decided)
NERSC services go live – Phase 3 (Services to be decided)
Look for ‘quick-wins’ & implement asap
Conclusions & Recommendations
The NERSC initiative delivers:
•
•
•
•
•
Citizen benefits - service improvements
Business benefits - transport operators
Regional improvements - social benefits
Business benefits - local authority
Modernisation improvements - e-Gov targets
A ‘win-win’ scenario for all stakeholders
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